Explain the documents related to “payment” made by importer to exporter in export procedure.
1. Letter of Credit : It is a guarantee issued by the importer's bank, that it will honour up to a certain amount the payment of export bills to the bank of the exporter.
2. Bill of Exchange : It is a written instrument whereby the person issuing the instrument directs the other party to pay a specified amount to a certain person or the bearer of the instrument. The documents giving title to the export consignment are passed on to the importer only when the importer accepts the order contained in the B/E.
3. Bank Certificate of Payment : It is a certificate that the necessary documents relating to the particular export consignment have been negotitated and the payment has been received in accordance with the exchange control regulations.
